9 February 2000

MINISTER ADDRESSES PLIGHT OF NI PETROL RETAILERS

Sir Reg Empey, MLA, Minister for Enterprise, Trade and Investment, last night met Danny Kennedy, MLA (Newry and Armagh), accompanied by a delegation from the Petrol Retailers Association to discuss the serious problems being experienced by petrol retailers, particularly those whose businesses are close to the Border.

The Minister is very concerned about the developing crisis in the industry and he has been keeping in close touch with the situation.

Commenting after the meeting, Sir Reg said: "The differential in fuel prices with the Republic is a very serious problem. Retailers have lost a substantial volume of their business. Indeed, in some border areas, losses of 80% are being reported.

"The Petrol Retailers Association estimates that at least 60 petrol stations have closed over the past two years and many, many more are in dire straits.

"Different levels of excise duty in the UK and the Republic of Ireland, and the current strength of sterling against the punt, are the main causes of the problem and this is exacerbated by cross-border smuggling and fuel laundering. An estimated £100 million excise duty was lost by the UK Exchequer in 1998 and, reportedly, this figure is increasing rapidly.

"Customs and Excise officers are working on the ground with the RUC to combat smuggling, and have had considerable success, using intelligence to bring offenders to justice, but their job is a difficult one. However, the issue cannot be resolved locally. It must be tackled at national level between the Governments of the UK and the Republic.

"Our efforts are therefore being focussed on the Treasury, particularly in the run up to the Budget when decisions on future fuel excise duties will be taken. I have already made representations, through the First and Deputy First Minister, to the Chancellor, Gordon Brown.

"The First Minister and Deputy First Minister are equally concerned. The problem was raised at the first British/Irish Intergovernmental Conference in December and they have had the matter included in the agenda for the next meeting.

"In addition, Dr Kim Howells, Minister for Competition and Consumer Affairs, who visited Northern Ireland two weeks ago, has agreed to ask Treasury to continue to consider options for mitigating the effects.

"There is considerable potential for damage to Northern Ireland’s wider economic infrastructure through loss of revenue in local communities along the northern side of the Border and further afield. I am therefore making every effort to make sure that Central Government is fully aware and is addressing the situation, which is unique to Northern Ireland."